Your credit score and why it matters

Your credit score and why it matters Your credit score is based on 5 major factors Jan 31 history of on-time % of credit used each month length of credit history types of credit previous application for credit payments you use credit score 000 Score good credit Score No Yes Denied application for loans and higher interest rate Easier to get credit and loans It takes 7 to 10 years for bad credit marks to disappear from your credit report How to improve your credit score • Pay bills on time • Use only 25% of your credit limit • Correct errors in your credit report How your FICO score is calculated ÖÖL Paying bills on time How much debt you have 35% 30% 15% 10% 10% Length of credit Type of credit you use history New credit applications FICO Credit Scores 720 and up - excellent 750-799 680 to 719 - good 620 to 679 - average 580 to 619 - poor 500 to 579 - bad 700-749 500 and less - very bad 27% 650-699 600-649 800-850 550-599 500-549 300-499 18% 15% 12% 13% 8% 5% 2% Who reports on your credit Experian TransUnion Equifax AnnualCreditReport.com Source: http://www.myfico.com & http://www.suntimes.com KIBDO Copyright © 2011 Kiboo LLC. All Rights Reserved. www.kiboo.com 16